NEW YORK CITY—The Kaufman Organization is partnering with Goldman Sachs on its long-term ground lease at 155 W. 23rd St., part of Extell Development's Ring portfolio now held by Kaufman, according to the Real Deal.
The duo paid approximately $45 million for a 99-year ground lease of the 12-story, 82,000-square-foot office building. Kaufman plans to spend $10 million refurbishing the Chelsea property, says president of Kaufman new ventures Fredric Leffel, with the work slated for completion in late 2016.
Once Kaufman completes the renovation of 155 W. 23rd St., asking rents for office space will range from the high-$60s to $70s per square foot. Kaufman also hopes to fill the building's ground-floor retail space.
The transaction is the fifth ground-lease on a Ring portfolio building that Kaufman secured from Extell. The company also bought 99-year leases on four nearby office buildings—all previously owned by brothers Frank and Michael Ring—for about $150 million last year.
Extell acquired the 14-building portfolio in 2013 from the brothers, who inherited the properties from their father and left them to deteriorate. As a result, the buildings remained nearly vacant even as the Midtown South office market became one of the most desirable in the city, according to Crain's.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
